The Differing Stages of Development in Organizations Essay

First phase of strategic planning is mission statement in which company explains its hereafter planning about concern. While composing the mission statement of the company it must be kept the undermentioned points in its head.

They should province clearly what they are making now and what will make in hereafter.

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Mission statement must ever be in positive sense.

To give a just reappraisal of whole undertaking or concern the company should explicate the concern in little pieces in its mission statement.

While developing the strategic planning company should explicate its aims. In which ways the company traveling to accomplish its purposes. For illustration if a garment maker has aim to capture abroad market with his garments so his aim is must to make good relation with abroad providers, arrange research work to happen out the client ‘s demands and besides required to happen out a suit able topographic point for abroad caput office.


After roll uping the necessary informations the intent of the strategic program is to puting ends for the company based on mission and vision statements. A end must be described to accomplish within clip bounds it may be for long term and may be for short term clip span. A company or group of companies should get down by accomplishing the short term ends so move to medium term and so long term ends.

Action program:

Every concern want to travel rapidly from down to din. This is the procedure where company fix action programs to accomplish its ends. To do its action programs more effectual it is necessary for company to set up the ends foremost and name them harmonizing to their importance




Zara is one the largest manner companies, it is the subordinate of Inditex the group of companies and established in 1979. It has a large scope of dressing retail shop for work forces, adult females and kids, Zara ‘s a big figure of shops in chief metropoliss of Europe, America and Asia shows the success of the Zara all over the universe. Zara ‘s motivation to supply stylish, voguish designs at sensible monetary values. Zara introduces the latest tendencies and manners in the market before their rivals that makes it more successful among a large scope of people, civilizations and coevalss in presence of big figure of rivals in the market.

What is Audit?

Audit is an appraisal of an organisation largely in footings of policies, processs, system and production.

Basically audit is performed to measure to organisation ‘s compatibility with standard operating processs which are pre defined for the smooth and dependable working of an organisation. So an organisational audit procedure starts from be aftering that how to carry on audit what would be its range so it moves towards fieldwork which include practical checking of samples which are taken for the intent of audit, when fieldwork is completed so 3rd phase comes which is describing which includes findings of audit, and the last measure of organisational audit procedure is follow-up, which is done for the intent of rectification of determination of audit.

SWOT Analysis:

SWOT analysis is used to place and analyse those factors which play a critical function in accomplishing the organisational aims which may be external and internal. Basically SWOT stands for following:


Includes the overall features or accomplishments portfolio of a company which distinguishes it from other rivals in footings of profitableness, market portion and trade name worthiness.


Includes those features of a company which topographic point disadvantage to it as compared to its rivals.


Includes those unveiled external opportunities which if availed they can hike company ‘s profitableness and gross revenues.


Includes all those external elements in concern environment which can adversely impact the concern.

Importance of SWOT in organisational audit Procedure of Zara:

In this assignment I have tried to demo the importance of SWOT analysis for Zara a vesture company & A ; I have identified and discusses the strengths / failing of the company and examined the chances and menaces it may confront with mention to is importance in audit procedure. Basically SWOT analysis is used by companies to entree and measure the industry and to do and developed strategic policies in order to stay competitory in market. Importance of SWOT in audit procedure of ZARA is critical as SWOT highlights the cardinal internal and external countries where Zara is making concern. SWOT analysis is used in determination devising procedure, as SWOT indicates the cringle holes and strengths of company so it helps a batch in audit procedure


Following are the Zara ‘s Strengths

Targeting the major market sections

Zara is a tendency compositor non tendency follower

Strong experient Marketing Team

High Brand acknowledgment

Enjoying high repute in market

High quality merchandises

Selling schemes

Wide web of shops all over the universe

Market demand in all seasons


Following are the Zara ‘s Weakness.

Monetary values are comparatively high as compared to its rivals.

High cost of production.

Not much celebrated trade name.


Following are the chief Opportunities to Zara

Growth of cyberspace leads to increase in figure of clients who wants to purchase online

New Emerging markets.

Opportunities to spread out concern in Asia


Following are the possible menaces to Zara from external Factors.

Rapid alteration in manner tendencies

Rising production costs can impact the profitableness of Zara.

Network Breakdown in distribution causes much more perturbation

Launch of new low-cost luxury points by rivals on comparatively cheaper monetary values



Harmonizing to porter ‘s five forces theoretical account there are five forces that determine industry attraction and long tally profitableness of industry.

Following are the five forces of porter ‘s theoretical account

Menaces of new entrants.

Dickering powers of providers

Dickering powers of Buyers

Industry rivals

Menaces of replacements

Menaces of New


Porter ‘s five forces theoretical account

Dickering powers of providers

Dickering Powers of Buyers

Industry rivals

Menaces of Substitutes

Menaces of new entrant:

The menace of new entries depend on barriers to entry, low barriers high entries, high barriers low entries. Higher the entry in the market, more competition in the market. Due to a good trade name name and quality merchandises Zara have no menaces from new entries if there any new company come to the market that will take some clip to do its topographic point in the market but Zara has some menaces from bing rivals I: vitamin E Next and Marks and Spencer ‘s, Zara must to better its merchandise quality and need to supply good client services to its clients to retain its market in presence of such a large rivals.

Dickering powers of providers:

The term providers comprise all type of inputs that ‘s required to supply a good client services. Supplier deal power will high if the figure of Zara ‘s providers are low and frailty versa. Zara has no menace from vesture providers because it has a big figure of vesture providers but If Zara need skilled labour so there is some menace from providers of skilled labour.

Dickering powers of Buyers:

In this portion of porter ‘s industrial theoretical account we will discourse about the power of deal of purchasers. If we see in context of Zara in the retail concern so we can see that the deal power of purchasers is really strong in this type of market. Any company does non cognize precisely what client ‘s pick is. Most of the clip clients are non agree to with the monetary value on the ticket. Customers do n’t desire to pay high monetary values but still take a firm standing for some better quality merchandises. In all these state of affairss direction of Zara need some refined strategic programs to get the better of all these jobs and seek to do upper limit of their clients satisfy. Zara got a large trade name name, so if Zara cut its monetary value of some merchandises so it could be able to pull most of the clients and could be able to retain them.

Industry Rivals:

If we see the retail industry market so there is a perfect competition in the market. Basically Zara trades with vesture industry market and if we see the vesture industry market in UK so there are a immense figure of retail merchants in market and in this state of affairs Zara need perfect strategic programs to remain in

Market. Zara needs non merely its bing clients but needs to pull new clients from the market to last.

Menace of replacement:

A menace of replacement is exits if there is an alternate merchandise is available on low monetary values. In this state of affairs Zara can better its scope of merchandises with high quality if it seems hard for company so Zara should marginally cut down its monetary values to capture the client market in presence of merchandise replacement. But some people may trade name conscious and they may non cook to purchase other alternate goods even on low monetary values. And as Zara is tendency compositor non a tendency follower may they present new tendency in vesture to last in dressing market.